KUN reports first-half growth exceeding targets, set to launch Charasaran project targeting senior market

Nichii Holdings Chairman Hiroshi Shimizu, in an interview, revealed a policy of partnering with municipalities and operators to sustain regional elderly care systems. He also indicated plans to invest 30 billion yen over four years starting this fiscal year to improve on-site response capabilities at roughly 1,900 care locations nationwide. Specific partnership measures envisioned include cost efficiency through joint purchasing of supplies and personnel support such as dispatching care assistants. Regional elderly care businesses face a harsh environment due to labor shortages and other factors, and Shimizu noted that "there are limits to what Nichii can do on its own."

Kasikorn Securities assesses that the two-week delay in the election of the Social Security Office board is unlikely to affect the approval of adjustments to medical treatment service rates, which are currently under review by the subcommittee considering medical treatment rate levels. The new SSO board is expected to begin work within November, later than the previously expected October, and the board will be the one to approve the subcommittee's meeting results and set the effective date of the new service rates. Currently, the subcommittee is scheduled to hold its third meeting on October 5, at which a conclusion on the rate adjustment is expected. If no conclusion is reached, a fourth meeting may be needed on October 24, which must be held before that date because it is when the subcommittee's term expires. The research team maintains a neutral view on the hospital sector, with PR9 as its top pick, and holds a positive view that the subcommittee will consider raising the flat-rate payment by 5%, assuming the flat-rate adjustment takes effect from 2027 onward in its profit forecasts for the three social security hospital stocks under coverage. It recommends buying BCH with a target price of 12.50 baht and RJH with a target price of 17.20 baht, and recommends holding CHG with a target price of 1.69 baht. However, if the Social Security Office does not raise service rates at all, the DCF value would fall 5% for BCH to 11.9 baht, fall 4% for RJH to 16.50 baht, and fall 4% for CHG to 1.69 baht.

Krungsri Securities, or KSS, said in an analysis that healthcare stocks remain attractive, supported by cooperation between insurers and private hospitals that is evolving into a Healthcare Ecosystem covering prevention, screening, treatment and rehabilitation. This should draw Thai patients back for continuous service use and build a stable long-term revenue base. A survey found that domestic insurance revenue for BDMS, BH, PR9 and BCH grew at average rates of 12%, 16%, 12% and 7% respectively during 2023-2025. In the first half of 2026, domestic insurance revenue at BDMS, BH and PR9 still grew 2%, 1% and 8% respectively year on year, while BCH fell 6%. The share of domestic insurance revenue in total revenue, ranked from highest to lowest, was BDMS at 31%, PR9 at 26%, BCH at 24% and BH at 14%. The research team assesses that hospital sector earnings have passed their bottom in the second quarter of 2026 and are entering the high season for domestic service use, and therefore selects BDMS with a target price of 25 baht, PR9 with a target price of 24 baht and BCH with a target price of 12 baht as its top picks. Tisco Securities raised its fair value for PR9 to 24.00 baht from 22.70 baht and maintained its buy recommendation, expecting core business revenue in the third quarter of 2026 to be 1.47 billion baht, up 6% year on year and 11% quarter on quarter. Net profit is expected at 225 million baht, up 1% year on year and 22% quarter on quarter, while EBITDA is expected at 372 million baht, up 13% year on year and 19% quarter on quarter. It also raised its 2026-2028 net profit forecasts by 2.9%, 3.7% and 4.9% respectively. CGS International (Thailand), or CGSI, estimates that combined net profit for the hospitals under its coverage will rise 11% year on year and 31% quarter on quarter, and recommends a take-profit level for PR9 at 20.00 baht and a stop-loss at 19.20 baht.